Saiyar said: starcraft said: Ok everyone. Those last three posts are from another thread where people didn't understand what a Sunk Cost was and how companies treat them. HappySquirrel and I put them straight Do you know what a sunk cost is? You clearly don't know the difference betwen an initial investment (sunk cost as you put it) and operating losses. Do some cheking up and you will find the "sunk cost" for Microsoft Home and Entertainment division is closer to $21 billion.

Clearly, I mistyped, and I apologize for that.

But if anything the fact that the sunk costs are in fact $21 billion+ strengthens my argument. The sheer weight of available assets Microsoft has as a result of these "sunk costs" is enormous. As for the "operating losses," they have been "operating profits" for the last two quarters. Why on earth would Microsoft leave an industry where they have massive assets, a huge potential for growth and operating profits?

I won't get into the relative uniqueness of Microsoft's position and whether the operating losses could still be classed as a "sunk cost."

;)

Saiyar said: starcraft said: Ok everyone. Those last three posts are from another thread where people didn't understand what a Sunk Cost was and how companies treat them. HappySquirrel and I put them straight Do you know what a sunk cost is? You clearly don't know the difference betwen an initial investment (sunk cost as you put it) and operating losses. Do some cheking up and you will find the "sunk cost" for Microsoft Home and Entertainment division is closer to $21 billion.

 Since those operating losses are also in the past and are equally irretrievable they can be considered "sunk" also.  Even if they have totalled $21 billion in losses rather than 6 you missed the point.  They are currently profitable, the market is expanding, and they have the assets to continue operations.  That means they will keep making xboxes whether you want them to or not.

 @starcraft

Thanks for typing all that up, I would have earlier but I got lazy.  I too am astounded by the dearth of economic knowledge on these forums.

So even with software selling so well, the 360 was a failure?

I found your post very interesting but I agree with superchunk, I don't think MS is done in the gaming market.

here we go again another troll thread.